Women across California continue to face persistent economic challenges that hinder their ability to achieve financial stability. In 2024, 18.4% of women in the state lived below the poverty line, a figure that underscores enduring disparities in wages, child care affordability, and caregiving responsibilities. Data from the U.S. Census reveals that women of color are disproportionately affected, with Black and Latina women experiencing poverty rates nearly 10 percentage points higher than white women, a gap rooted in long-standing structural inequities tied to racism and gender bias.
When women are economically empowered, entire communities benefit. Yet despite progress in workforce participation and earnings over recent decades, systemic barriers remain. Recent federal and state-level reductions in essential support programs threaten to deepen these disparities. The Republican-led H.R. 1 legislation proposes sweeping cuts to health care, nutrition assistance, and other foundational services—programs that primarily serve women, particularly those from marginalized backgrounds. These changes come at a time when women already face unequal access to medical care and higher out-of-pocket costs.
The 2025-26 California state budget also includes reductions in health care funding, which could worsen existing inequities. With over 7 million Californians already living in poverty, policymakers have a critical opportunity to reverse course by investing in proven poverty-reduction strategies. This includes expanding access to affordable health services, child care, housing, and food support. Such investments are feasible through increased, sustained revenue generation—especially from corporations and high-income individuals who have benefited significantly from recent federal tax breaks.
Analysis using the Supplemental Poverty Measure shows that women in California now experience higher poverty rates than men—a shift from previous years when trends were nearly identical. In 2024, 18.4% of women were poor compared to 17.0% of men. This divergence follows the expiration of pandemic-era supports like the expanded Child Tax Credit, which had temporarily reduced hardship. The proposed elimination of SNAP (CalFresh) and Medicaid (Medi-Cal) funding under H.R. 1 would further strain low-income women, limiting access to preventive care, reproductive health services, and primary care.
Older women are especially vulnerable. Among those aged 65 and above, the poverty rate reached 22.7% in 2024—more than five points above the overall female average. High medical expenses and new work requirements may prevent many retired women, particularly those who left the workforce for caregiving, from maintaining coverage. These policy shifts risk pushing more seniors into financial crisis.
Adult women saw the largest increase in poverty since 2021, rising from 10.4% to 17.2%. Contributing factors include lower average earnings—approximately $10,000 less than men—and higher housing cost burdens. H.R. 1 exacerbates these issues by introducing administrative hurdles such as eligibility checks and copayments for Medi-Cal, which could lead to millions losing health coverage, especially among low-income adults.
Racial disparities remain stark. In 2024, 26.1% of Black women and 23.2% of Latinx women lived in poverty, compared to 14.1% of white women. These gaps reflect generations of discriminatory practices in housing, banking, education, and taxation. Over one-third of Californians—nearly 15 million people—rely on Medi-Cal, with Latinx individuals making up more than half of enrollees and Black residents nearly 7%. Cuts to this program would disproportionately impact communities of color.
Additionally, premium costs for Covered California are expected to rise by an average of 66% due to the end of enhanced tax credits, with even steeper increases projected for communities of color. Meanwhile, the federal estate tax has been effectively dismantled, allowing wealthy families to transfer up to $30 million tax-free, further entrenching wealth inequality.
Without decisive state action, federal policies will deepen racial and gender-based inequities. Protecting Medi-Cal and advancing fairer tax structures are essential steps toward shared prosperity. Renters, particularly women, are also at heightened risk. In 2024, 28.1% of female renters lived in poverty—more than double the rate for female homeowners (11.3%). Unaffordable housing costs, combined with stagnant wages and caregiving demands, keep many women trapped in economic insecurity.
Federal proposals threaten to worsen the housing crisis. While the Senate has maintained flat funding for Housing Choice Vouchers, it falls short of covering renewals, potentially displacing 14,400 households (31,600 people) in California. Thousands more in emergency voucher programs remain in limbo without a pathway to permanent support.
To address these challenges, state leaders must act. Recommendations include eliminating the water’s edge loophole, which allows corporations to avoid $3 billion in annual taxes; limiting excessive tax deductions for profitable firms; and implementing a graduated corporate tax rate. These reforms would generate vital revenue to strengthen safety net programs.
Poverty is not inevitable—it is shaped by policy choices. California has the tools to ensure women can thrive, but only if decision-makers prioritize equity and justice.
— news from California Budget & Policy Center